Kinnithrung Sprat Development and Economic Research Counselor World Trade Organization Wednesday, May 8, 2002 New Horizons in Third-world Agribusiness.

Kinnithrung SpratDevelopment and Economic Research CounselorWorld Trade OrganizationWednesday, May 8, 2002

New Horizons in Third-world New Horizons in Third-world Agribusiness GlobalizationAgribusiness Globalization

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Why is 3Why is 3rdrd World World Starvation a Problem?Starvation a Problem?

INV

ES

TM

EN

TS

EX

PO

RT

S

ST

AN

DA

RD

OF

LIV

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Investments, Exports and PovertyInvestments, Exports and Poverty

Results of Rising PovertyResults of Rising Poverty

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Results of Rising PovertyResults of Rising Poverty

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Results of Rising PovertyResults of Rising Poverty

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Results of Rising PovertyResults of Rising Poverty

How Does Starvation Happen?How Does Starvation Happen?

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Primitive EconomyPrimitive Economy

Export

LocalConsumption

Modern EconomyModern Economy

Export

LocalConsumption

MA

RK

ET

RE

ST

RIC

TIO

NS

PR

ICE

S

Market Restrictions, Prices, Market Restrictions, Prices, and Povertyand Poverty

PO

VE

RT

Y

The IMFThe IMF

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The IMFThe IMF

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The IMFThe IMF

Robin Hood Solutions…Robin Hood Solutions…

““False Truths”False Truths”

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Export

LocalConsumption

Good Intentions, Bad IdeasGood Intentions, Bad Ideas

Cultural InsensitivityCultural Insensitivity

Available Investment CapitalAvailable Investment Capital

RICH POORMIDDLE CLASS

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Available Investment CapitalAvailable Investment Capital

RICH POORMIDDLE CLASS

Available Investment Capital•

Available Investment CapitalAvailable Investment Capital

RICH POORMIDDLE CLASS

Available Investment Capital

Hunger Helps…Hunger Helps…

……Handouts Don’tHandouts Don’t

ZZ

ZZ

ZZ

The Solution?The Solution?

The Market

Living SmallLiving Small

MARASMUSMARASMUS

KWASHIORKORKWASHIORKOR

MARASMICMARASMICKWASHIORKORKWASHIORKOR

NUTRITIONALNUTRITIONALDWARFISMDWARFISM

Living LargeLiving Large

SLEEPSLEEPAPNEAAPNEA

DIABETESDIABETES

HYPER-HYPER-TENSIONTENSION

CORONARYCORONARYDISEASESDISEASES

GALL-GALL-STONESSTONES

OBESITYOBESITY

A Miraculous SolutionA Miraculous Solution

An American EvolutionAn American Evolution

A French De-evolutionA French De-evolution

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A French De-evolutionA French De-evolution

Applying the American ModelApplying the American Modelto the Third Worldto the Third World

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Applying the American ModelApplying the American Modelto the Third Worldto the Third World

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Applying the American ModelApplying the American Modelto the Third Worldto the Third World

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Applying the American ModelApplying the American Modelto the Third Worldto the Third World

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Applying the American ModelApplying the American Modelto the Third Worldto the Third World

A Third World Third WayA Third World Third Way

Historical CategoryHistorical Category

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Biological CategoryBiological Category

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Saudi ArabiaSaudi Arabia

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ChinaChina

Pragmatic VisionsPragmatic Visions

“The economic logic behind dumping a load of toxic waste in the lowest wage country is impeccable…”

RecyclingRecycling

80%

A Wealth of WasteA Wealth of Waste

100%100% 80%

80%

A Wealth of WasteA Wealth of Waste

100%100% 80%

•

80%

A Wealth of WasteA Wealth of Waste

100%100%

Hamburger x 10Hamburger x 10

1x2x

3x4x

5x6x

7x8x

9x10x

$1.00 $.01$.02$.03$.05$.10$.20$.40$.60$.80

The McDonald’s FormulaThe McDonald’s Formula

FiltersFilters

Cigarette Coffee Food

More Robin Hood?More Robin Hood?

Striving for the BestStriving for the Best

1x2x

3x4x

5x6x

7x8x

9x10x

$1.00 $.01$.02$.03$.05$.10$.20$.40$.60$.80

Striving for the BestStriving for the Best

1x2x

3x4x

5x6x

7x8x

9x10x

$1.00 $.01$.02$.03$.05$.10$.20$.40$.60$.80

Letting GoLetting Go

1x2x

3x4x

5x6x

7x8x

9x10x

$1.00 $.01$.02$.03$.05$.10$.20$.40$.60$.80

Opting OutOpting Out

1x

$1.00

2x3x

4x5x

6x7x

8x9x

10x$.01$.02$.03$.05$.10$.20$.40$.60$.80

Opting OutOpting Out

1x

$1.00

A Win - Win SituationA Win - Win Situation

A Training EconomyA Training Economy

Culturally SensitiveCulturally Sensitive

The Value of the BodyThe Value of the Body

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The Value of the BodyThe Value of the Body

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Ford’s VisionFord’s Vision

An Aztec SolutionAn Aztec Solution